Chap 3 HM Manager Q

Chap 3 HM Manager Q - Question 1: (10 points) Exercise 3-9:...

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Question 1: (10 points) Exercise 3-9: Computing ABC Product Costs (LO2, LO3) Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 per hour. c. Rims are more complex to manufacture than Posts, and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Overhead Cost Activity Activity Cost Pool Activity Measure Rims Posts Total Machine setups Number of setups $21,600 100 80 180 Special processing Machine-hours $180,000 4,000 0 4,000 General factory Direct labor-hours $288,000 8,000 16,000 24,000 Requirement 1: Compute the activity rate (i.e., predetermined overhead rate) for each activity cost pool. (Omit the "$" sign in your response.)
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Chap 3 HM Manager Q - Question 1: (10 points) Exercise 3-9:...

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